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Home My WebLink About1998-08-19 PACKET 04.N.REQUES7 OF C(TY COUNCIL AC710N COUNGL laGENDA MEETIfJG ITEf�h # DATE 8119/98 � . /f � PREPRRED BY Finance ! iz Johnson CDRIGINATiPJG DEPARTMENT STAFF AUTHOR d� 6 i 4 t R k k 9 9 rt* 4 0 9 rt! R 4 Q*$ q ffi 9!& k N� %' C k* R& 4**@*#} R t#* tr tr COUNCIL ACTION REQUEST Approve quote 40 outsource printing and mailing of utility bills BUQGET IMPLICATION; $ $ UDGETED AMOUNT ACTUAL AMOUNT ADVISORY COMMISSION ACTION ❑ PLANPJING ❑ PU�LIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAIV SERV�CESIRIGHTS ❑ ECdNOMIC DEV. AUTHORITY ❑ SUPPORTING DOCUMENTS �_ _ �1 ' • . ■' • � ■ •' � . ■ •' �' • ■ , � �, �, ►� � . •� _, •_ ., REVIEWED ❑ ❑ ❑ ❑ ❑ ❑ ❑ UNqWG SOU CE APPROVED ❑ ❑ 0 ❑ ❑ ❑ ❑ DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ � �� > City Administrator Ctate d��¢��#s��>.��K,��<��.��.�<....��. �e�u�ci� A��ri�� r�K��: ❑ a��c�v�� ❑ �E�a�c� ❑ o°rr-o�� To: Ryan Schrceder, City Administrator From: Elizabeth Johnson, Finance Director�' Date: 08/13/98 Re: outsourcing printing and mailing utility bills Introduction I am requesting approval to outsource mailing and printing utility bills. Diseussion 'i'he City's utiliry billing system includes 8,300 commercial and residential accounts that are billed four times per yeu. This translates to 33,200 utility bills that are printed and mailed each yeaz. The following summazizes the cost to the city to retain printing and mailing utiliry bills, based on a volume of 33,200 bills per year: The costs for forms, envelopes and printer cartridges aze based on actuat costs incureed by the city. The stafftime is based on 3 hours per month at the overtime rate. Stafftime was calculated in this manner because the Finance Department has one network printer that is shazed by all 8 staff inembers. It generally takes about three hours to physically print each billling run of 2,000 to 3,000 bills per month and is done after hours. It is not feasible to tie up the Department's only network printer for this space of time each month. Many � t _ _ .. _ . ��._ _,__ _„ �.. �. .. r . � Augusf 13, 1998 depardnent staff members would be unable to proceed with their work if we were to tie up the printer for this length of time each month. The only alternative to this situation would be to purchase a high speed printer that would be dedicated to printing utility bills. The cost of such a printer would be about $5,000, which would add to the cost of in-house printing. The costs in the table above do not reflect additional repair and weaz and teaz on the existing printer that would be caused by printing an additional 33,200 pieces of paper each year. We received cost quotes from Bjorlin Forms and National Business Systems to print and mail utility bills. $jorlin Forms was .52 per page and National Business Systems was .50 per page. We believe that National Business Systems would result in a lower cost to the Ciry to print and mail utility bills. The NBS cost would be: Per page $ .17 Forms, per page .03187 Outer envelope .04312 Reply envelope A2967 Postage .23 Total per page $.50466 Delivery (40* 12) per year $480.00 Yearly total $17,234.00 The greatest cost savings would come from the postage discount. The postal rate per piece of mail would fall from .28 per piece to .23 per piece. This savings comes from a CASS certification discount. This discount is available for a minimum of 500 pieces of CASS certified mail. CASS refers to baz coding and sequencing mail in the carrier route sort order. lt atso refers to the manner it is delivered to the post office; i.e. in U.S. Postal Service approved trays. The city's rate is a zip code plus 4 rate, which is a higher rate. The ability to do CASS includes using a certified sofrwaze. This sofrwaze price is prohibitive to the City; appro�timately $9,000. The NBS rate per page includes the CASS certification, the Bjorlin Forms rate does not. Requested Action Approve quote from National Business Systems 40 outsource printing and mailing of utility bills. 14 30 RUG 86, 1998 iD� 612-688-BSa6 INVESTMENT ANALY5IS Services For Manthly Statement Processing Inciude: Page cost for the follawing services � ➢ Postal Presort Processing ➢ Postal Automation Processinp(Delivery 8ar Code) ➢ Intelli�ent InsertinA Processin0 Qnserter Reatl Marks) D Xerox Laser Printing(Simplex Printing) ➢ 8eil 3 Howeli Inteiilgent Inserting - Nest Foiding - Postape Meterinp and Sealing - Genenc Inserts ➢ Complete Postal Make Ready 5ervice - Total Compllance wlth US Postel Regulatlons - Maxlmlzatlon Ot Postai Discounts Wlth Co•Mlnple Ventlor - Bag, Tag, Trey, Etc. - Postage Usape Report Provided After Each Mailinp - Inventory Ot Stock ttams Providad After Each Mailinp Additlonai Sarvicea and Charnea Delivery cherpe to US Postal Service PreprJn! Btfltng Forms Uaage � J4,000 yearly #40 Outer preprinted Envefopea Usage � 3�1,D00 yearly N8 Window Repty EnvoJopae UsaQc ��,000 yearly estimated 5421.00 one time $ 4Q.00 S 0.09t87 each PfuBS'7b0.00 typesetting $ 0.043t2 eech S O.P2867 oRth Application Setup Forms Warehousing In-House Postal �iscount Service �44335 PAGE 2i2 17 Per Page N/C Inciuded Production Tumaround Non-Querter Entl Monthiy Voiumes( 8 Per Yeah 7wo Deys Quarter End Volumes( 4 Per Year ) Three Days